Intelligent Systems Completes Sale of PaySys International Affiliate; Company Nets $22.1 Million at Closing

NORCROSS, Ga., April 30 /PRNewswire/ -- Intelligent Systems Corporation
(Amex: INS); (www.intelsys.com ) announced today that it has completed the
sale of its ownership interest in PaySys International, Inc., an affiliate
company and a leader in financial transaction processing software
applications, in a cash transaction.
Intelligent Systems, along with other shareholders of PaySys
International, Inc., sold all of the outstanding stock of PaySys to Atlanta-
based First Data Corp. (NYSE: FDC), a global provider of e-commerce and
payment services. Net proceeds to Intelligent Systems from the sale of its
PaySys stock were $17,800,000. In addition, at the closing PaySys repaid to
Intelligent Systems $4,300,000 in principal and interest related to short-term
bridge financing.
J. Leland Strange, President and Chief Executive Officer of Intelligent
Systems, said, "As the largest shareholder in PaySys, we are particularly
gratified that the strategic fit between the PaySys software business and
First Data's e-commerce and payment services allowed PaySys shareholders to
realize a fair value under current market conditions."
Intelligent Systems retains an approximately 30 percent ownership share in
each of two development stage companies that were spun off from PaySys
immediately prior to the sale transaction. The two companies, Delos Payment
Systems, Inc and dbbAPPS, Inc., will develop and market the proprietary dBB
operating platform and application software that has been under development by
PaySys for the past several years.
Strange commented, "Through the early stage spin-off companies, we now
have the opportunity to explore new applications beyond the credit card
processing industry that we believe will benefit from the unique
characteristics of the dBB software technology."
As part of the sale transaction, a significant escrow fund was set aside
for potential liabilities that may arise after the closing. The balance of
the escrow fund, after payment of any such claims, will be distributed pro
rata to the PaySys shareholders, including Intelligent Systems, as additional
sale proceeds at various time periods over the next four years.
On March 19, 2001, Intelligent Systems had announced the definitive
agreement and various closing conditions related to this sale. The
transaction was completed on essentially the same terms and conditions and
within the timeframe originally announced.
About Intelligent Systems Corporation
For more than twenty-five years, Intelligent Systems Corporation has
identified, created, operated and grown early stage technology companies. The
company uses a combination of business know-how, flexible support, a network
of contacts and resources and equity capital to create sustainable companies.
Since 1990, the company has operated the Intelligent Systems Incubator, an
award-winning pioneer in privately funded incubators. Further information is
available on the company's website at www.intelsys.com , or by calling the
company's headquarters at 770/381-2900.
In addition to historical information, this news release contains forward-
looking statements relating to Intelligent Systems and its affiliated
companies. Such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties. Actual results may differ
materially from those contemplated by such forward-looking statements and the
company does not undertake to update or revise any forward-looking statements
whether as a result of new developments or otherwise. Among the factors that
could cause actual results to differ materially are changes in financial
market conditions, actions of third parties, delays or changes of intent by
third parties, delays in product development, competitive pressures, technical
difficulties, changes in customer requirements, market acceptance of products
and services, availability of capital, availability of qualified personnel,
financial results and valuation of partner companies, and general economic
conditions.
CONTACT: Bonnie Herron of Intelligent Systems Corporation, 770-564-5504,
or bherron@intelsys.com
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SOURCE Intelligent Systems Corporation

NORCROSS, Ga., April 30 /PRNewswire/ -- Intelligent Systems Corporation
(Amex: INS); (www.intelsys.com ) announced today that it has completed the
sale of its ownership interest in PaySys International, Inc., an affiliate
company and a leader in financial transaction processing software
applications, in a cash transaction.
Intelligent Systems, along with other shareholders of PaySys
International, Inc., sold all of the outstanding stock of PaySys to Atlanta-
based First Data Corp. (NYSE: FDC), a global provider of e-commerce and
payment services. Net proceeds to Intelligent Systems from the sale of its
PaySys stock were $17,800,000. In addition, at the closing PaySys repaid to
Intelligent Systems $4,300,000 in principal and interest related to short-term
bridge financing.
J. Leland Strange, President and Chief Executive Officer of Intelligent
Systems, said, "As the largest shareholder in PaySys, we are particularly
gratified that the strategic fit between the PaySys software business and
First Data's e-commerce and payment services allowed PaySys shareholders to
realize a fair value under current market conditions."
Intelligent Systems retains an approximately 30 percent ownership share in
each of two development stage companies that were spun off from PaySys
immediately prior to the sale transaction. The two companies, Delos Payment
Systems, Inc and dbbAPPS, Inc., will develop and market the proprietary dBB
operating platform and application software that has been under development by
PaySys for the past several years.
Strange commented, "Through the early stage spin-off companies, we now
have the opportunity to explore new applications beyond the credit card
processing industry that we believe will benefit from the unique
characteristics of the dBB software technology."
As part of the sale transaction, a significant escrow fund was set aside
for potential liabilities that may arise after the closing. The balance of
the escrow fund, after payment of any such claims, will be distributed pro
rata to the PaySys shareholders, including Intelligent Systems, as additional
sale proceeds at various time periods over the next four years.
On March 19, 2001, Intelligent Systems had announced the definitive
agreement and various closing conditions related to this sale. The
transaction was completed on essentially the same terms and conditions and
within the timeframe originally announced.
About Intelligent Systems Corporation
For more than twenty-five years, Intelligent Systems Corporation has
identified, created, operated and grown early stage technology companies. The
company uses a combination of business know-how, flexible support, a network
of contacts and resources and equity capital to create sustainable companies.
Since 1990, the company has operated the Intelligent Systems Incubator, an
award-winning pioneer in privately funded incubators. Further information is
available on the company's website at www.intelsys.com , or by calling the
company's headquarters at 770/381-2900.
In addition to historical information, this news release contains forward-
looking statements relating to Intelligent Systems and its affiliated
companies. Such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties. Actual results may differ
materially from those contemplated by such forward-looking statements and the
company does not undertake to update or revise any forward-looking statements
whether as a result of new developments or otherwise. Among the factors that
could cause actual results to differ materially are changes in financial
market conditions, actions of third parties, delays or changes of intent by
third parties, delays in product development, competitive pressures, technical
difficulties, changes in customer requirements, market acceptance of products
and services, availability of capital, availability of qualified personnel,
financial results and valuation of partner companies, and general economic
conditions.
CONTACT: Bonnie Herron of Intelligent Systems Corporation, 770-564-5504,
or bherron@intelsys.com
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X13116771
SOURCE Intelligent Systems Corporation